1.

Changes in the environment

• Physical environment
• Societal environment
• Industry environment
Sources of 2. Technological discovery and
advancement - A person with entrepreneurial
Opportunity interest sees possibility of business opportunities in
any new discovery or because of the use of latest
There are many ways to technology.
discover opportunities.
3. Government’s thrust, programs, and
Looking at the big picture policies - The priorities, projects, programs, and
some have noticed the policies of the government are also good sources of
emerging trends and patterns idea.
for business opportunities.
While others are trying to find 4. People’s interest - The interest, hobbies,
out their target market. Some and preferences of people are rich source of
are the following sources of
entrepreneurial ideas.
opportunities: 5. Past experiences - The expertise and
skills developed by a person who has worked
in a particular field may lead to the opening
of related business enterprise.
Forces of Competition Model

It is also known as the “Five

Forces of Competition”, An
industry environment is a
competitive environment.
Regardless of what product
or services you have,
competition is always
present.
Competition – it For example, the
is the act or prices are lower
process of when there is a
competition among
trying to get or the stores.
win something.
These are the five forces
competing within the
industry:

• Buyers
• Potential new entrants
• Rivalry among existing firms
• Substitute products
• Supplier
Buyers
- The buyers are the one that pays cash in exchange
to your goods and services. For example, the
influenced of the price or in the bargaining
strategy. The buyer has a strong and magnified
bargaining power.
Potential New Entrants
A new entrant is defined as the one who enters
something. For example, the level of capital
requirements, if the business requires huge
capital, new entrants should decline to join the
business. This gives a threat to the business.
Rivalry among Existing Firms
Rivalry is a state or situation in which people or
groups are competing with each other. For
example it depends on the Marketing strategy
of your competitor, like giving freebies and
special offers
Substitute Products
Substitute means anything that takes the place
or function of another. For example the
consumers decide to use margarine as a
substitute for butter. In case the price of butter
increases, preferably the consumer will
gradually switch to margarine.
Suppliers
The Suppliers are the one that provide something
that is needed or wanted. For example if the supply
and services being offered is unstable or keep. The
intensity of the threat is strong in this kind of the
competitive force in the industry.